Mastercard CEO thinks SWIFT payment system probably won’t exist in 5 years

Towards the end of the SWIFT interbank payment system?

Currently, the World Economic Forum (WEF), also known as the Davos Forum, is being held, organized by the Global Blockchain Business Council. Many actors of the financial system are present to discuss around several topics and in particular on the future of cross-border paymentsand the potential of central bank digital currencies (MNBC).

A panel on MNBCs brought together industry players including Michael Miebach, CEO of Mastercard, Yuval RoozCEO of Digital Asset, and David Treatdirector at Accenture and co-founder of the Digital Dollar Project (an organization responsible for studying the potential and development of an American MNBC).

There was also at this meeting Jennifer Lassiterexecutive director of the Digital Dollar Project, and Jon FrostSenior Economist at the Bank for International Settlements (BIS).

A response to a question during an interview has, moreover, aroused astonishment in the media and in public opinion. She comes from Mastercard CEOMichael Miebach, who simply replied ” Nope Β» when asked if SWIFTthe current interbank messaging system that allows cross-border payments, will still exist in five years.

Despite her smile during her response, everyone seems to have taken her response seriously. This response was not expected given his position at Mastercard, which is a major user of SWIFT.

The other personalities present at this conference do not seem to be of the same opinion since they all replied that SWIFT will still exist in five years.

Yuval Rooz still thinks that this interbank payment system could one day be replaced, but that five years would not be enough. He is waiting to see other emerging technologies.

The CEO of payment giant Mastercard was the only one to say that SWIFT might not be the dominant system for transferring money between continents in the near future.

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A nuanced answer

It should be made clear here that this is a response to be qualified sincethis is not a direct statement, but a simple answer to a question. No one can say that the CEO of Mastercard was really serious, nor even the arguments put forward since there are none. But it is still a paradigm shift for a major player in payments.

A spokesperson for Mastercard has also minimized the impact of Miebach’s answer in a statement emailed after the interview:

“Let us clarify the intent of the on-stage commentary, because it’s not as simple as a yes or no answer. Michael simply reinforced what SWIFT said earlier: its operations continue to evolve. Its current form will not be the same in the future. They add more functionality and are no longer just a messaging system. Β»

Miebach therefore seemed to say that the current system would no longer exist, replaced by a more advanced SWIFT, with new functionalities.

The SWIFT system tries to modernize

SWIFT processed 42 million messages per day last year, but transactions on the network can take several days. The company tries to maintain its relevance in the international financial systemparticularly with regard to central bank digital currencies.

As early as May 2021, SWIFT explored the use of MNBCs to facilitate payments between countries and continents. More recently, on May 19, 2022, SWIFT announced on Twitter its second round of experiments involving MNBCs, collaborating with French IT company Capgemini.

As SWIFT strives to remain attractive, new technologies are being explored to speed up cross-border payments. We inevitably think of the blockchain for the speed of transactions.

πŸ‘‰ Find out more: Payment solutions Visa, Mastercard and PayPal suspend their services in Russia

Source: Coindesk

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About the Author : Timothy Bernines

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Passionate about the world of investment, cryptocurrencies have been attracting my attention for a few years now. Having a major interest in the fields of new technologies and Web 3, this is why I naturally wanted to write articles on Cryptoast, in order to contribute to the democratization of this universe in society.
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